Nigeria is burning through its foreign exchange reserves at a rate not seen in four years, raising concerns that the central bank is depleting its dollar holdings to support the naira after pledging it would allow the currency to float more freely.

Liquid reserves declined 5.6% since March 18, when the naira started its rebound from record-low levels against the dollar, to $31.7 billion as of April 12, according to Bloomberg’s calculations based on the latest available data from the Central Bank of Nigeria.

That’s the biggest decline in a similar period since April 2020, according to data compiled by Bloomberg.

At the beginning of the year, the naira went down to about N1,900 to a dollar. Many speculators had expected the value of the naira to continue its free fall. However, the naira has been gaining strength lately and has gone up to about N1,100 to a dollar.

Bloomberg reports that the development came after the Central Bank of Nigeria introduced measures to improve liquidity, attract capital inflows and allow the market to determine the naira’s exchange rate. As part of the reforms, the CBN pledged to clear a backlog of pent-up dollar demand.

“The CBN does appear to be using its FX reserves to clear the valid backlog, and return the naira to a realistic exchange rate,” said Charles Robertson, the London-based head of macro strategy at FIM Partners. “My assumption is they hope to encourage others – local and foreign investors – to start investing in the local currency, and return private sector liquidity to the foreign exchange market.”

Nigeria still has a sizable cushion of foreign-exchange reserves, buoyed by a rally in oil prices and inflows from multi-lateral loans. Gross reserves of around $32.6 billion cover about six months’ worth of imports, according to the International Monetary Fund.

The central bank said last month it had cleared a backlog of overdue dollar purchase agreements estimated at $7 billion since the beginning of the year.

That was built over years as the central bank pegged its currency against the dollar, leading to a scarcity of foreign currency that deterred foreign portfolio investment. However, it’s unclear how much dollar debt the CBN retains on its books.

The publication of the central bank’s financial statements late last year showed it had securities lending agreements with JP Morgan Chase & Co. for $7 billion and another $500 million with Goldman Sachs Group Inc.

It is not clear if those obligations have been settled. A spokesperson for the central bank didn’t immediately respond to Bloomberg’s request for comment on the telephone.

The FX reserves have fallen despite a surge of inflows into capital markets following 600 basis points of cumulative interest rate hikes in February and March, which increased the allure of Nigerian local debt. Foreign portfolio inflows exceeded $1 billion in February, bringing total receipts so far this year to at least $2.3 billion, according to the central bank.

“The CBN will also be aware that new inflows from Afreximbank, the World Bank, and a possible eurobond, plus the benefit of higher oil prices and a likely return of remittances via official and semi-official channels (rather than bitcoin) will allow reserves to stabilize or rise again,” Robertson said.

DMerciful:
Nope, the SW and North perceived Jonathan as Igbo, thats why the campaign of calumny against him

Joy2dworldxyz:


Arsenal go win with a lone goal

Wainey:
because kidnappings has become normal, when a particular crime becomes too much, it's becomes normal.
Cultism, cybercrime, agbero has become a normal thing

Bovis:


RIP Sir Belgore, you have come, seen and conquered

A retired Justice of the Court of Appeal, Ahmad Olanrewaju Belgore, is dead.

The Chairman of the Nigeria Bar Association, Ilorin Branch, Kwara State, Kamaldeen Gambari, announced his death on Tuesday.

“Information reaching me now indicates that Hon. Justice Ahmad Olarewaju Belgore, PCJA (retd.) is dead. May Allah forgive his shortcomings,” Gambari said in a social media post, as reported by Leadership Newspaper.

PUNCH Online was unable to locate the specific social media post referenced by the newspaper.

Belgore retired as the Justice of the Court of Appeal on April 18, 2023, on the attainment of the retirement age of 70.

Meanwhile, in a condolence message, the Emir of Ilorin and Chairman, Kwara State Traditional Rulers Council, Alhaji Ibrahim Sulu-Gambari described the death of Justice Belgore as a big loss to the Ilorin Emirate and nation at large.

The Emir, in a statement by his spokesman, Abdulazeez Arowona, said, “This is a great and colossal loss that has befallen the Ilorin Emirate and humanity at large.

“It is with shock that I received the news of the demise of Justice Ahmad Belgore. He was a complete gentleman, a thorough judicial officer who served the nation meritoriously in various capacities, nationally and internationally.

“He was one of the finest justices that the Ilorin Emirate has ever produced. He contributed in no small measures to the growth and development of the judiciary and humanity in general.

The Emir commiserated with the immediate and extended family members of the deceased as well as the entire people of Ilorin and Nigerians in general.

The General Overseer of The Redeemed Christian Church of God, RCCG, Pastor Enoch Adeboye, has warned those who criticise and mock him to thread with caution. The cleric said those who do such things end badly.

Pastor Adeboye said even though he is nothing and weak, those mocking him and the mission should know that his God is a consuming fire.

He reminded his critics that the word of God made it clear that anyone God will use must be foolish, must be weak, be a nobody so that nobody will get the glory.

Recall that Adeboye had been drawing criticism from several celebrities and on-air personalities over some of his declarations and comments.

Adeboye’s sermon
Adeboye made the comments during his sermon and annointing service at the monthly Holy Ghost service. It was held on the theme: “Shielded by Fire” at The Redemption City of God.

In his words: “If Paul, who wrote more than half of the New Testament, claimed to be less than the least of the saint, according to Ephesians 3:8, Pastor Adeboye is nothing.

“However, his God is everything. Listen to me carefully, Adeboye is one stupid boy and I would prove it to you before I close, But his God is wiser than the wisest.

“Adeboye is weak, he eats pounded yam and goes to the toilet. But his God is stronger than the strongest. Adeboye is nothing but his God is the All-sufficient God.

“So there is nothing spectacular. There is no big deal if you mock Pastor Adeboye. He deserves to be mocked.

“The word of God made it abundantly clear. Anyone that God will use must be weak, foolish, and a nobody, so that only God will take the glory. So you can mock Adeboye, but you must not mock his God.

“Why? Because Adeboye is nothing, there is nothing he can do to you. But his God is a Consuming fire."

Going further, he revered cleric asked his members series of questions.

“I want to ask you some questions. The fact that the leaders of Boko Haram are Muslims or claimed to be Muslims, does that mean every Muslim is a terrorist?

“Because one Islamic cleric said they should kill our first lady, does that mean every Imman is a murderer.

“There was this guy called HUSSPUPPY, the fellow who was the original 419 man that was arrested in Dubai. He happens to be a Nigerian, does that mean every Nigerian man is a 419?

“If a pastor and his wife do something insensitive somewhere, does that mean every pastor everywhere is insensitive?

Pastor in Ireland
“Then what about this pastor somewhere in Ireland. They said he committed all manners of atrocities. How will you explain that?

“Number one, the way they reported it in Nigeria is different from the way is reported where it happen.

“Over there they said “a former pastor”. Meaning he used to be. But put that one aside.

“They didn’t tell you the whole story, they did not tell you that they did not catch the boy. But he reported himself and why did he report himself, he heard a sermon on restitution and decided it is better to suffer shame while here on earth than to go to hell.

“And where did he hear that sermon, in the Redeemed Christian Church of God. We are among the few churches left in the world that ever talk about restitution.”

‘I am not Justifying the unjustifiable’
While noting that the pastor might have backslided when he committed the crime, he said: “Do you know the Bible says he who thinks he stands should take heed, lest he falls?

“Even you standing today be careful. I pray you will never fall.”

“You can say ‘but he was ordained as a pastor’. But have you heard about backsliding? Once hot for the Lord and along the line became cold. The Bible even said ‘he that thinketh that he stand…’.

“I don’t want to give the impression that I am justifying the unjustifiable. The Lord prayed all night and chose 12 disciples. One of them turned out to be Judas Iscariot. One failure out of 12.

“If you consider the number of pastors in RCCG in Nigeria, alone. Don’t let me tell you the number. But let me tell you mathematically. The number of pastors in Nigeria alone today is more than 200 thousand.

“If we find one here, one there over there, well our Lord Jesus Christ the one we are following chose 12 but one was the devil.”

Nigeria’s Economy
Pastor Adeboye lamented the increase in the pump price of fuel and the hike in the electricity tariff.

He added that what is happening in Nigeria is not ordinary. Adeboye said when he saw the way things were going he had to quickly call on some prayer warriors to intercede for the country.

He said: “If I am not such a ‘stupid’ boy I would have asked God how worse things would get before they get better.

“I did not ask. So, you see how stupid a boy I am. All of a sudden we saw the Naira going down. I never knew the Naira would go so bad.

“I know nations who got independence at the same time as Nigeria whose money is like 10,000 to a Pound.”

However, he said he called for more prayers for the country and those in place of authorities. He urged Nigerians not to be tired of praying for the country.

“As I was coming out of the prayer room, I heard the government has increased the price of fuel and electricity tarrif had increased.

“If the price of fuel increases, it means the cost of transporting the food to the market will increase. It means the food will increase in price.

“I had this feeling that the rate this is happening is no longer natural.

“And then I heard a prophet had prophesied that things would only get better towards the end of 2025.”

Ikjec:
Good or bad, this administration has done well when it comes to reducing fuel cue

Electricity in South Africa is N147 per kWh

In Calgary, Canada it is N122 per kWh.

In Nigeria, it is N225 per kWh.

Minimum wage in South Africa is N312,000.

Minimum wage in Calgary is N2.3 million.

Minimum wage in Nigeria is N30,000.